Redemption Of Debentures CBSE Questions & Answers

Redemption Of Debentures

This is Accountancy Class 12 Redemption of Debentures CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Debenture Redemption Reserve account is shown on which side of the balance sheet
  • A
    None
  • B
    Assets
  • C
    Liabilities
    Correct
  • D
    Not to be shown
2
SEBI guideline related to redemption of debentures are to protect the
  • A
    Debtors
  • B
    Debenture holders
    Correct
  • C
    Creditors
  • D
    Shareholders
3
Premium on redemption of debentures is which type of account
  • A
    All of these
  • B
    Nominal account
    Correct
  • C
    Personal account
  • D
    Real account
4
DRR can be used only after redeeming the ___________ percent of debentures
  • A
    10 percent
    Correct
  • B
    50 percent
  • C
    25 percent
  • D
    100 percent
5
Profit on redemption of debentures is a
  • A
    General Reserve
  • B
    Capital Profit
    Correct
  • C
    Both of these
  • D
    None of these
6
X Ltd. issued 1,000, 12 percent debentures of Rs.100 each at par. These debentures are redeemable at 10 percent premium at the end of 4 years. By what amount debenture holder account should be debited while making payment to them
  • A
    Rs.100000
  • B
    Rs.120000
  • C
    Rs.110000
    Correct
  • D
    Rs.90000
7
XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. Give journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. By what amount bank account should be debited while passing journal entry for Issue of debentures at 10 percent discount and redeemable at 10 percent premium
  • A
    Rs.20000
  • B
    Rs.20000
  • C
    Rs.40000
  • D
    Rs.18000
    Correct
8
XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. Give journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. The directors decided to transfer the minimum amount to Debenture Redemption Reserve on December, 31 2002 Amount paid to debentures holders
  • A
    Rs.20000
  • B
    Rs.18000
  • C
    Rs.24000
  • D
    Rs.22000
    Correct
9
XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. Give journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. The directors decided to transfer the minimum amount to Debenture Redemption Reserve on December, 31 2002 Amount transfer to General Reserve account
  • A
    Rs.10000
    Correct
  • B
    Rs.20000
  • C
    Rs.15000
  • D
    Rs.22000
10
XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. Give journal entries at the time of issue and redemption of debentures if debentures are to be redeemed in lump sum at the end of 4th year. The directors decided to transfer the minimum amount to Debenture Redemption Reserve on December Transfer of profits to DRR as per Sec 117(C) and SEB
  • A
    Rs.22000
  • B
    Rs.10000
    Correct
  • C
    Rs.15000
  • D
    Rs.20000
11
P ltd. Issued 20000: 10 percent debentures Rs.100 each at a premium of 8 percent on 30th June, 2012. The issue was fully subscribed. Hoe much amount of DRR is to be created before redemption of debentures
  • A
    Rs.20000
  • B
    Rs.10000
  • C
    No DRR
    Correct
  • D
    Rs.15000
12
ABC Ltd purchased its own debentures of Rs.100 each of the face value of Rs.20,000 from the open market for cancellation at Rs.92. The amount of profit on redemption of debenture
  • A
    Rs.1600
    Correct
  • B
    Rs.1840
  • C
    Rs.1500
  • D
    Rs.2000
13
ABC Ltd purchased its own debentures of Rs. 100 each of the face value of Rs.20,000 from the open market for cancellation at Rs..92. What should be the journal entry while transferring the profit on cancellation of debentures to capital reserve
  • A
    None of these Option A
  • B
    Option B
  • C
    Option C
    Correct
  • D
    Option D
14
ABC Ltd purchased its own debentures of Rs.100 each of the face value of Rs.20,000 from the open market for cancellation at Rs..92. The amount of profit to be transferred to DRR
  • A
    Rs.9200
  • B
    Rs.15000
  • C
    Rs.25000
  • D
    Rs.20000
    Correct
15
Naman Limited redeemed 1,000, 15 percent debentures of Rs.100 each by converting them into equity shares of Rs.10 each at a premium of Rs.2.50 per share. The company also redeemed 500 debentures by utilizing Rs.50,000 out of profit. The amount of security premiums
  • A
    Rs.25000
  • B
    Rs.20000
    Correct
  • C
    Rs.15000
  • D
    Rs.10000